Dogecoin has experienced a significant surge in trading activity, with volume increasing by 61% on spot exchanges. This uptick comes as traders position themselves ahead of a critical decision from the Federal Reserve, which could influence broader market dynamics.
The cryptocurrency market has seen a general upward trend as anticipation builds around this macroeconomic signal. Following a low of $0.134 on December 7, Dogecoin has climbed to a recent high of $0.153 before settling at around $0.145, marking a 3% increase in the last 24 hours. The spike in trading volume brought the total to approximately $1.68 billion, according to CoinMarketCap data.
As the market awaits the Federal Reserve”s interest rate announcement, sentiment among traders appears divided. Some members of the Federal Open Market Committee (FOMC) advocate for a rate cut, while others caution that further reductions could exacerbate inflationary pressures. Today marks the conclusion of a two-day meeting, where the FOMC is expected to announce an interest rate cut, with current predictions suggesting a 90% probability of a quarter-percentage point reduction to a range of 3.5%-3.75%, based on insights from the CME FedWatch Tool.
Traders are particularly attentive to statements from Fed Chair Jerome Powell, who will address the media post-meeting, offering potential insights into future monetary policy directions. The recent relief rally in Dogecoin follows a downturn earlier in December, with its price fluctuating between $0.131 and $0.156 since November 21. Observers will be keen to see if Dogecoin can break above the $0.156 level, as that would signal a more robust upward movement. Should the price decline, support is anticipated around the $0.13 mark.
